The Corporate Sustainability Reporting Directive (CSRD) has undergone major changes in recent months, most notably through the European Commission’s Omnibus “quick fix” amendments and ongoing simplification efforts.
While some companies now have additional flexibility, the message is still clear: CSRD is here, and organizations need to start preparing for reporting requirements now, regardless of whether they’re set to report this year or two years from now.
For large companies under Wave One, reporting using 2024 data is already underway, with limited assurance and ESRS disclosures in scope. For Wave Two and Three companies, the pressure is building to lay the groundwork — from conducting a double materiality assessment to building out auditable ESG data infrastructure.
With more than 50,000 companies worldwide expected to fall under CSRD, the time to assess your CSRD readiness and start closing critical gaps is now.
Whether you’re a multinational with European Union subsidiaries, a non-EU company nearing the threshold, or an SME navigating future applicability, these 10 steps will ensure preparedness as you get ready for CSRD and move from uncertainty to action.
💡 Check out Pulsora’s ultimate guide to the CSRD to ensure full readiness.
10 ways to ensure CSRD readiness and compliance
1. Determine whether (and when) you're in scope
Why it matters: CSRD doesn’t just apply to EU-based companies. If you’re a non-EU company generating €150M+ in EU turnover or have a subsidiary that meets “large undertaking” thresholds, you’re likely in scope.
Recent Omnibus updates propose raising the third-country threshold to €450M, but that hasn’t been finalized.
The CSRD expands the scope of the original Non-Financial Reporting Directive (NFRD) and introduces a phased implementation timeline based on company size, location, and turnover. If your company previously reported under the NFRD, you're considered a Wave One reporter and are already required to report using 2024 data. For others, reporting will phase in through 2026, 2027, and 2029.
What readiness looks like: You’ve already mapped your entity structure, confirmed applicability per the latest European Commission thresholds, and understand which wave (1, 2, or 3) you fall into.
Action if not ready:
- Conduct a scoping review based on workforce size, revenue, and location.
- Monitor updates from EFRAG and the EU Commission.
- Pay attention to exemptions for listed SMEs and consolidated reporting.
2. Complete a double materiality assessment
Why it matters: Under CSRD, companies must assess both how sustainability issues impact their financial performance (financial materiality) and how they impact people and the planet (impact materiality).
This double materiality assessment determines the sustainability information you must disclose under the European Sustainability Reporting Standards (ESRS).
What readiness looks like: You've conducted a documented and stakeholder-informed assessment, with clear prioritization of ESG topics across your value chain.
Action if not ready:
- Engage stakeholders, including investors, suppliers, and affected communities.
- Use software tools or consultants to document and justify your approach.
- Revisit your DMA annually for evolving risk management protocol.
💡 Considering solutions for managing end-to-end CSRD compliance? Check out our CSRD buying guide to choose the right tool for you.
3. Conduct a gap analysis against ESRS
Why it matters: The ESRS includes dozens of disclosure requirements across environmental, social, and governance topics. Most companies aren’t starting from scratch — but few are fully aligned either.
What readiness looks like: You’ve mapped your existing ESG reporting to CSRD’s reporting obligations and identified where disclosures fall short, especially for data points like biodiversity, water usage, or social metrics.
Action if not ready:
- Download the ESRS templates and crosswalk them with your current reports.
- Prioritize high-impact gaps aligned with your materiality assessment using data management software.
- Create a phased roadmap to close the gaps ahead of your first reporting year.
4. Assess your sustainability data infrastructure
Why it matters: CSRD isn’t just about what you disclose; it’s about how you gather and validate your sustainability data. This includes emissions, workforce metrics, and other ESG indicators, often spread across multiple departments and systems.
What readiness looks like: Your data collection process is automated, structured, and centralized—with audit trails and traceability in place.
Action if not ready:
- Inventory your ESG data sources and tools.
- Invest in platforms that support CSRD reporting, data validation, and integration with ERP systems across your supply chain.
- Focus on high-risk areas like Scope 3 emissions, biodiversity, and workforce data.
5. Define your audit and assurance process
Why it matters: Under CSRD, sustainability disclosures must be independently assured. Limited assurance is required now, but companies must prepare for reasonable assurance in the future.
What readiness looks like: You’ve already looped in internal audit and external assurance providers, built version control and documentation workflows, and can clearly trace every disclosed figure.
Action if not ready:
- Define internal roles and responsibilities for assurance.
- Build or optimize workflows for evidence tracking and version management.
- Monitor the European Commission’s evolving guidelines on assurance practices.
6. Evaluate your governance and internal accountability
Why it matters: CSRD requires companies to disclose how sustainability is governed: who’s responsible, how it’s embedded in strategy, and what oversight exists.
What readiness looks like: You have an ESG or sustainability committee at the board level, and executive accountability for sustainability topics.
Action if not ready:
- Define sustainability oversight roles for your C-suite and board.
- Include CSRD metrics in executive performance goals.
- Document your governance structure in line with ESRS G1 requirements.
7. Prepare for reporting process complexity
Why it matters: CSRD reporting is not a one-time PDF. You’ll need to publish a digital, machine-readable sustainability statement alongside your annual report. And, if you’re a multinational group, you may need to consolidate multiple sustainability statements.
What readiness looks like: You’ve already designed your reporting process and workflows, including XBRL formatting, legal review, and sustainability data signoff.
Action if not ready:
- Outline a reporting calendar with clear internal deadlines.
- Select a reporting platform that supports ESRS templates and tagging.
- Coordinate with legal, finance, and IT to streamline the reporting process.
8. Understand the implications of the Omnibus simplification package
Why it matters: The Omnibus “quick fix” allows some Wave One companies to defer disclosure of certain datapoints — like Scope 3 emissions or biodiversity — until mandates in 2026 or 2027. But this doesn’t mean you should delay preparation.
What readiness looks like: You know which datapoints are deferred for your company and have a clear plan to fill them in over time.
Action if not ready:
- Review the Omnibus updates for applicable reliefs.
- Build a tiered compliance roadmap to meet both short-term and long-term CSRD requirements.
- Don’t treat deferment as exemption — your investors and stakeholders may still expect this data.
9. Align teams and educate stakeholders
Why it matters: CSRD touches nearly every department: finance, operations, HR, procurement, legal, investor relations, and more.
What readiness looks like: You’ve formed a cross-functional CSRD task force with clear ownership, regular check-ins, and defined deliverables.
Action if not ready:
- Conduct CSRD readiness workshops with internal teams.
- Identify training needs, especially around materiality, assurance, and data governance.
- Bring in external consultants or auditors as needed to accelerate internal understanding.
10. Invest in CSRD-ready reporting software
Why it matters: Manual reporting is time-consuming, error-prone, and difficult to audit. A purpose-built platform can streamline everything from data collection to final report generation.
What readiness looks like: You’ve implemented a tool that supports sustainability disclosures, integrates with your existing systems, and helps you manage regulatory updates.
Action if not ready:
- Evaluate CSRD software platforms based on features like audit trails, ESRS mapping, and scalability.
- Select a solution that supports not just compliance, but better ESG decision-making across your company.
- Look for platforms that provide built-in templates, workflow automation, and assurance readiness.
Your journey to CSRD preparedness starts today
CSRD compliance isn’t a finish line; it’s a long-term transformation of how your company operates, measures, and communicates sustainability performance.
By focusing on these 10 steps, you can turn compliance into opportunity, build trust with your stakeholders, and lead the market in transparency.
How Pulsora helps companies operationalize CSRD readiness
Pulsora’s sustainability management platform is purpose-built to support every step of your CSRD readiness journey. from ESG data integration to audit-ready reporting aligned with the European Sustainability Reporting Standards (ESRS).
Whether you're navigating Wave One disclosures or building a roadmap for future compliance, Pulsora helps you streamline the reporting process, eliminate data silos, and ensure you're always prepared for evolving CSRD requirements.
Ready to get started? Learn how Pulsora ensures CSRD readiness.
Frequently Asked Questions about ways to prepare for CSRD
What is CSRD readiness?
CSRD readiness refers to how prepared a company is to meet the reporting and disclosure requirements under the Corporate Sustainability Reporting Directive (CSRD). This includes understanding whether your company is in scope, conducting a double materiality assessment, ensuring data quality, building audit readiness, and aligning with the European Sustainability Reporting Standards (ESRS).
Who does the CSRD apply to?
The CSRD applies to:
- Large EU-based companies (250+ employees, €40M turnover, or €20M+ in assets)
- Listed SMEs (with delayed reporting)
- Non-EU companies generating €150M+ in EU turnover (threshold proposed to increase to €450M)
Your reporting timeline depends on which “wave” your company falls into — Wave One companies must report first, using 2024 data.
How can I tell if my company needs to report under CSRD?
Start by reviewing whether you meet the size, revenue, or EU activity thresholds outlined in the directive. If your company previously reported under the Non-Financial Reporting Directive (NFRD), you’re automatically included in Wave One and already required to begin CSRD reporting. Non-EU companies and listed SMEs must evaluate whether they cross the threshold based on their EU footprint.
What is a double materiality assessment?
A double materiality assessment is a core CSRD requirement that evaluates:
- Financial materiality – how sustainability issues affect your business
- Impact materiality – how your business impacts people and the environment
This assessment determines which topics your company is required to report on under the ESRS and must be well-documented and stakeholder-informed.
What are the ESRS and why do they matter?
The European Sustainability Reporting Standards (ESRS) are the mandatory disclosure framework for CSRD. They define what companies must report across environmental, social, and governance categories and provide the structure for your sustainability statements. CSRD readiness requires alignment with these standards.
What data do I need to report under CSRD?
You must report structured, verifiable data on ESG performance—including greenhouse gas emissions (Scopes 1, 2, and 3), energy use, workforce metrics, governance practices, and more. CSRD also requires forward-looking information, such as sustainability targets and transition plans.
What is the difference between limited assurance and reasonable assurance?
Under CSRD, companies must obtain third-party assurance of their sustainability disclosures.
- Limited assurance is a preliminary review to verify plausibility.
- Reasonable assurance is more rigorous and comparable to a financial audit.
CSRD will phase in a transition from limited to reasonable assurance over time.
How can software help with CSRD compliance?
CSRD-ready software can automate data collection, facilitate double materiality assessments, align your reports with the ESRS, and build in audit-ready documentation. It’s especially critical for large companies or non-EU multinationals managing data across multiple entities and geographies.
How has the EU Omnibus “quick fix” changed CSRD requirements?
The EU’s Omnibus quick fix provides temporary relief for Wave One companies, allowing them to delay certain disclosures—like Scope 3 emissions or biodiversity data—until 2026 or 2027. However, these deferrals are short-term. Companies should use the additional time to invest in systems, training, and governance structures that support long-term CSRD compliance.
What happens if I don’t comply with the CSRD?
Failure to comply with CSRD can result in regulatory penalties, reputational damage, and loss of investor trust. Because CSRD disclosures are intended to be public and auditable, inaccuracies or omissions can also create legal and operational risk. Preparing early is key to avoiding last-minute scrambling and ensuring your disclosures are accurate and meaningful.
